A parent company purchased a 90% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $322,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $230,000 and to an unrecorded Customer List valued at $92,000. The building asset is being depreciated over a 10-year period and the Customer List is being amortized over a 5-year period, both on the straight-line basis with no salvage value. During the current year, the subsidiary declared and paid $103,500 of dividends. The parent company uses the cost method of pre-consolidation investment bookkeeping. Each company reports the following income statement for the current year:

	Parent	Subsidiary
Income statement:
Sales	$12,650,000	$1,380,000
Cost of goods sold	(8,510,000)	(828,000)
Gross profit	4,140,000	552,000
Income (loss) from subsidiary	93,150	-
Operating expenses	(3,772,000)	(404,800)
Net income	$461,150	$147,200

a. Starting with the parent's current-year pre-consolidation net income of $461,150, compute the amount of current-year net income attributable to the parent that will be reported in the consolidated financial statements.

Do not usenegative signs with your answers below.

Reconciliation of Cost to Equity Method
Parent's pre-consolidation net income	Answer
Dividend Income	Answer
P% x Net income of subsidiary	Answer
P% x AAP amortization	Answer
Net income attributable to controlling interest	Answer

b. Prepare the consolidated income statement for the current year.

Do not usenegative signs with your answers below.

Consolidated Income Statement
Sales	Answer
Cost of goods sold	Answer
Gross profit	Answer
Operating expenses	Answer
AnswerNet income attributable to noncontrolling interestsNet income attributable to the parentNet income	Answer
Answer